Hello Everyone, How is gratuity in india calculated in case of death of an employee before 5 years of service and after 5 years of continuous service..Please help! Its urgent! Thanks.
From India, Mumbai
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Please note that gratuity is not paid if an employee's death occurs before 5 years of service. If the employee has worked for 5 years or more, then the calculation is as follows:

Current Basic salary/26 = 1 day salary
1 day salary x 15 = 15 days salary
15 days salary x number of years worked = Gratuity

Example Calculation

Basic salary = $3000
Years worked = 6 years
Gratuity calculation:
$3000/26 x 15 x 6 = Gratuity

I hope this clarifies the calculation process for gratuity. Thank you!

From India, Silvassa
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But prakash, according to me in case of death 5 years service isnt taken into consideration??!!
From India, Mumbai
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Dear madam As per the provisions of the Payment of gratuity act 1972, in case of death of employee, then the minimum service is waived and priests gratuity is payable. Adv SAWANT 9011075672
From India, Pune
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In the case of an employee's death, continuous service of 5 years is not a must. If any employee dies who has served in an organization for less than 6 months, they will not be eligible for gratuity. Any person who has served for more than 6 months or 180 days will be eligible for gratuity for 1 year.

Similarly, if a deceased employee has served for 2 years and 8 months, the gratuity will be calculated for 3 years. If they have served for 2.5 years, they will be paid for 2 years only.

Minimum 6 months or 180 days of working is compulsory to receive the gratuity benefit for a complete year for a deceased employee.

Please let me know if you need any further clarification or information.

Thank you.

From India, Mumbai
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